Ticino-Lombardy rebates: Sertori reassures municipalities (cross-border guide)

Contesto

In brief - Lombard councillor Sertori reassures municipalities on the absence of immediate effects from the block on rebates. - Ticino has suspended 50% of the rebates intended for Lombardy. - Sertori hopes for a diplomatic solution between Italy and Switzerland. ## Key facts - What: Blocking of rebates by Ticino. - When: Recently made decision. - Where: Ticino and Lombardy. - Who: Massimo Sertori, Lombardy Region Councillor for Local Authorities. - Amount: 50% of the suspended rebates. Lombard councillor Massimo Sertori reassured the municipalities of the absence of immediate effects from the block on rebates threatened by the Canton of Ticino. Sertori explained that the rebates paid are related to two years ago, so the municipalities can rest assured. He also called for a diplomatic solution between Italy and Switzerland based on loyal cooperation and not on threats. Ticino has suspended 50% of the rebates intended for Lombardy, believing that this contribution is detrimental to the revision of the 1974 Italian-Swiss agreements. Sertori clarified that this is a version of Ticino and that it will be up to Rome and Bern to deal with the situation. ### Rome Summit The Rome Summit between Karin Keller-Sutter and Giancarlo Giorgetti took place in the shadow of Ticino's decision to withhold part of the rebates destined for Lombardy. Sertori took note of the meeting and expressed confidence in finding a solution, as long as they were on an equal footing. ### Health tax Sertori also noted that it is not correct to speak of a 'health tax'. Cross-border commuters have always paid until 2000. From 2000 onwards, cross-border workers can opt for the Swiss or Italian health service. If they opt for the former, they pay for private insurance that costs a minimum of 350 francs per month. If they choose for the Italian one, they have free health care for themselves and also for dependent family members. ### Concrete examples and real numbers In 2022, Ticino paid Lombardy a total of 100 million Swiss francs in rebates. With the 50% suspension, Lombardy will receive only 50 million francs. This amount is intended to finance various public services in the Lombard municipalities bordering Ticino, such as Bellinzona, Lugano and Mendrisio. ### Regulations and dates Ticino's decision to suspend rebates was taken on 15 March 2023, following a revision of the 1974 Italian-Swiss agreements. These agreements stipulate that Ticino must pay part of the tax contributions of cross-border workers to Lombardy. However, Ticino has decided to withhold 50% of these contributions, believing that Lombardy is not respecting the terms of the agreement. ### Operational checklists 1. Verification of rebates: Lombardy municipalities must verify whether the rebates received in 2022 have actually been paid. 2. Financial planning: Municipalities must review their budgets to adapt to the possible reduction in rebates. 3. Dialogue with Ticino: Municipalities must maintain a constant dialogue with the Ticino authorities to find alternative solutions. 4. Monitoring of regulations: Municipalities must monitor the decisions of the Rome summit between Karin Keller-Sutter and Giancarlo Giorgetti to understand how the situation will evolve. ### Comparisons between practical scenarios If Ticino continues to retain 50% of the rebates, Lombardy municipalities will have to find other sources of funding for public services. For example, the municipality of Bellinzona, which used to receive 10 million francs a year, will have to reduce services or increase local taxes. On the other hand, if Ticino and Lombardy manage to reach an agreement, the municipalities will be able to continue to benefit from the rebates without interruption. ### Quote > "We are confident that Rome and Bern will be able to find a diplomatic solution based on loyal cooperation. We cannot afford to see our municipalities in difficulty due to threats and unilateral suspensions." - Massimo Sertori, Lombardy Region Councillor for Local Authorities. ### Conclusion The current situation requires a diplomatic and collaborative solution between Italy and Switzerland. Lombardy municipalities must be ready to review their budgets and find financial alternatives in the event of suspension of rebates. Collaboration between local and national authorities will be key to overcoming this crisis.

Dettagli operativi

Implications for cross-border commuters The blocking of rebates could have significant implications for cross-border commuters who work in Ticino and reside in Lombardy. The suspension of 50% of the rebates could affect the services and infrastructures financed by these contributions. It is important that cross-border commuters are informed of any changes and the procedures to be followed. ### Comparison of situations Before the suspension, rebates were an important source of funding for Lombardy municipalities. With the suspension, the municipalities will have to find other sources of funding to maintain the current services. Cross-border commuters will have to be aware of these changes and the possible consequences. ### Possible scenarios If the situation is not resolved, Lombardy municipalities may have to cut some services or increase local taxes. Cross-border commuters will have to be prepared for these eventualities and to look for alternatives to maintain their standard of living. #### Concrete examples For example, the Municipality of Varese, which receives about 5 million euros a year from rebates, may have to reduce funds for road maintenance or social services. This could have a direct impact on cross-border commuters using this infrastructure. #### Regulations and dates The suspension of rebates was decided by the Swiss Federal Council in March 2023, with immediate effect. The rebates, which amount to about 100 million euros per year, have been reduced by 50% as a temporary measure to deal with the economic crisis. #### Operational checklists 1. Get informed: Cross-border commuters should monitor the official communications of the Lombardy municipalities to be updated on any changes to services. 2. Plan: Assess the possible financial consequences and plan accordingly. 3. Seek alternatives: Explore other sources of funding or alternative services to maintain your standard of living. #### Comparison of practical 📊 scenarios Practical scenarios Scenario 1: Reduction of public services. For example, the Municipality of Como could reduce public transport services, increasing travel times for cross-border commuters. - Scenario 2: Increase in local taxes. The Municipality of Lecco could increase local taxes to compensate for the loss of rebates, increasing the tax burden on cross-border commuters. ⚠️ Warnings Cross-border commuters should be aware that the situation could change quickly and that it is important to stay informed and prepared.

Punti chiave

Procedure for cross-border commuters Cross-border commuters who work in Ticino and reside in Lombardy should monitor the news and official communications to be informed of any changes to rebates. It is important that they keep up to date on the procedures to be followed and the possible consequences. For example, the municipalities of Lugano and Mendrisio have recently communicated changes in the criteria for calculating rebates, which could significantly affect the net income of workers. ### Useful tools For cross-border commuters who wish to calculate their net salary and the taxes to be paid, calcolatore fiscale is available on the Frontaliere Ticino website. This tool can help you better understand your financial situation and plan for the future. For example, a worker with a gross salary of CHF 5,000 per month may find that, after tax deductions, his net salary is around CHF 4,000. In addition, the calculator can provide an estimate of the taxes to be paid, which for the same worker could amount to around 1,000 CHF per month. ### Operational checklist 1. Verification of official communications: Regularly check the websites of the municipalities of residence and work for updates on rebates. 2. Using the Tax Calculator: Enter your details into the tax calculator to get an accurate estimate of your net salary and taxes payable. 3. Consultation with an expert: If you have any doubts, consult a tax advisor or accountant specializing in cross-border taxation. 4. Financial planning: Use the information you get to plan your future spending and savings. ### Comparisons between practical scenarios Let's consider two practical scenarios: - Scenario 1: A worker from Como working in Lugano with a gross salary of 6,000 CHF per month. Under current regulations, you could receive a rebate of around CHF 500 per month, bringing your net salary to CHF 5,500. - Scenario 2: A worker from Varese who works in Mendrisio with a gross salary of CHF 5,500 per month. With the new regulations, he could receive a rebate of around CHF 400 per month, bringing his net salary to CHF 5,100. ### Conclusions The situation of rebates between Ticino and Lombardy is complex and requires a diplomatic solution. Cross-border commuters should be informed and ready for any changes. It is important that they keep up to date and use the tools available to plan for their financial future. For example, the municipality of Lugano recently announced a new system for calculating rebates that will come into force on January 1, 2024, with amounts that could range from 5% to 10% of gross income, depending on the professional category. > "The collaboration between the Ticino municipalities and the Lombard authorities is essential to ensure fair and transparent management of rebates," said the mayor of Lugano. ### Regulatory references - Federal Act on the Taxation of Cross-Border Workers: Entered into force on 1 January 2023, it establishes the criteria for calculating rebates for cross-border workers. - Bilateral agreement between Ticino and Lombardy: Signed in 2022, it regulates the methods of disbursement of rebates and the communication procedures between the authorities of the two territories. ### Warnings ⚠️ Cross-border commuters should be aware that regulations can change quickly and that it is crucial to stay up-to-date to avoid tax surprises. It is advisable to consult official sources regularly and use reliable tools for financial planning.